Taking The Plunge Into Income Property Ownership?

We’re meeting more and more clients that are thinking about taking the plunge into owning an income property.  The biggest question we get is….how do we find good tenants?  Unfortunately, there’s no sure way to do this but there are a few recommendations we’d provide.

1) Don’t skimp out on background checks and credit checks.  Call references.  Do as thorough of a search as you can.  Some landlords we know have even driven by the prospective tenant’s current place of living to see if the outside is well kept.  Do they leave their trash on the porch?  Are they blaring loud music?

2) Know your state laws and establish clear boundaries in your rental agreement.  If there is a problem, it’ll be easier to handle it if you’ve laid out clear boundaries in your rental agreement and know what your state allows/doesn’t allow in terms of eviction.  Knowing these laws first will help you establish a clear plan of action when something unfortunate happens.

3) Join your local landlord association.  Talking with other landlords will give you tips and tools of the trade that you can really only learn with valuable experience.  Plus, when you have a situation you’re not sure how to handle, they can be a valuable source to turn to.

4) Find your tenants through an agency.  Using a real estate agency to help advertise and find your tenants lets you know that the tenants who apply and look at your property are seriously looking at properties and giving thoughtful consideration to each property.

5) Have a sense of humor.  You can prepare and prepare and prepare, but the unexpected will always happen.  Have a sense of humor about the process, keep a rainy day fund to help you through struggling times with tenants and remind yourself that every experience is a valuable learning experience for future scenarios.

Here’s a great infographic to provide you with some more tips as you begin your journey into the world of becoming a landlord!

Top 10 Tips for New Landlords Photo Credit: http://www.biggerpockets.com/blogs/2997/blog_posts/25908-infographic-for-new-landlords
Top 10 Tips for New Landlords
Photo Credit: http://www.biggerpockets.com/blogs/2997/blog_posts/25908-infographic-for-new-landlords

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